UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   -----------

                                    FORM 10-Q

(Mark One)  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
   |X|      AND EXCHANGE ACT OF 1934

                       FOR THE PERIOD ENDING June 30, 2005
                                       OR

   |_|      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
            AND EXCHANGE ACT OF 1934

            FOR THE TRANSITION PERIOD FROM _____________ TO ___________

                         COMMISSION FILE NUMBER 0 - 1325

                                   -----------

                              MULTIBAND CORPORATION

             (Exact name of registrant as specified in its charter)

                                    MINNESOTA

         (State or other jurisdiction of incorporation or organization)

                                  41 - 1255001

                        (IRS Employer Identification No.)

              9449 Science Center Drive, New Hope, Minnesota 55428

                    (Address of principal executive offices)

                   Telephone (763) 504-3000 Fax (763) 504-3060

                         Internet: www.multibandusa.com

     (Registrant's telephone number, facsimile number, and Internet address)

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  and Exchange Act
of 1934  during the  preceding  12 months (or for such  shorter  period that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.

                             Yes |X|       No |_|

         Indicate by check mark whether the registrant is an  accelerated  filer
(as defined in rule 12b-2 of the Exchange Act).

                             Yes |_|       No |X|

         On August 18,  2005 there were  29,092,035  shares  outstanding  of the
registrant's  common stock,  par value $.01 per share,  and 456,999  outstanding
shares of the registrant's convertible preferred stock.

<PAGE>

PART I.  FINANCIAL INFORMATION

ITEM 1.  CONSOLIDATED FINANCIAL STATEMENTS

                     MULTIBAND CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                                Three Months Ended               Six Months Ended
                                                          ----------------------------    ----------------------------
                                                            June 30,         June 30,       June 30,        June 30,
                                                              2005            2004            2005            2004
                                                          ------------    ------------    ------------    ------------
<S>                                                       <C>             <C>             <C>             <C>
                                                          (unaudited)     (unaudited)      (unaudited)     (unaudited)
REVENUES                                                  $  4,183,606    $  2,911,261    $  7,890,482    $  3,673,916

COSTS AND EXPENSES
     Cost of products and services (exclusive of
       depreciation and amortization shown
       separately below)                                     1,703,517       1,712,280       3,583,025       2,123,242
     Selling, general and administrative                     2,377,575       1,137,780       4,524,487       1,965,933
     Depreciation and amortization                           1,218,867       1,150,677       2,367,734       1,502,922
                                                          ------------    ------------    ------------    ------------
           Total Costs and Expenses                          5,299,959       4,000,737      10,475,246       5,592,097

LOSS FROM OPERATIONS                                        (1,116,353)     (1,089,476)     (2,584,764)     (1,918,181)

OTHER EXPENSE
     Interest expense                                         (373,013)       (188,986)     (1,058,714)       (418,320)
     Other income (expense)                                     70,120           6,851          82,292          21,713
                                                          ------------    ------------    ------------    ------------
           Total Other Expense                                (302,893)       (182,135)       (976,422)       (396,607)

LOSS FROM CONTINUING OPERATIONS                             (1,419,246)     (1,271,611)     (3,561,186)     (2,314,788)

INCOME (LOSS) FROM DISCONTINUED OPERATIONS                     122,892        (179,863)       (318,376)       (653,551)

NET LOSS                                                    (1,296,354)     (1,451,474)     (3,879,562)     (2,968,339)
     Preferred Stock Dividends                                (669,634)       (395,273)     (1,600,718)       (457,926)
                                                          ------------    ------------    ------------    ------------
LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS                  $ (1,965,988)   $ (1,846,747)   $ (5,480,280)   $ (3,426,265)
                                                          ============    ============    ============    ============
BASIC AND DILUTED - LOSS PER COMMON SHARE
     Loss from continuing operations                              (.05)           (.06)           (.13)           (.11)
     Income (loss) from discontinued operations                   (.00)           (.00)           (.01)           (.03)
     Net Loss                                                     (.05)           (.06)           (.14)           (.14)
LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS                          (.07)           (.08)           (.20)           (.16)

WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED     28,634,502      22,689,301      27,929,454      20,984,967
</TABLE>

            See notes to condensed consolidated financial statements

                                                                          Page 2
<PAGE>

                     MULTIBAND CORPORATION AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                           June 30, 2005    December 31, 2004
                                                                                           -------------    -----------------
                                        ASSETS                                              (unaudited)          (audited)
<S>                                                                                        <C>              <C>
CURRENT ASSETS
   Cash and cash equivalents                                                                $  5,407,000      $    726,553
   Certificate of deposit                                                                        650,000           650,000
   Accounts receivable, net                                                                    1,874,989         2,783,774
   Inventories                                                                                   285,189           231,993
   Current assets of discontinued operations                                                          --           634,307
   Note receivable, net                                                                          339,051                --
   Other current assets                                                                          425,385           146,334
                                                                                            ------------      ------------
      TOTAL CURRENT ASSETS                                                                     8,981,614         5,172,961
                                                                                            ------------      ------------
PROPERTY AND EQUIPMENT, NET                                                                    4,075,534         4,372,474
                                                                                            ------------      ------------
OTHER ASSETS
   Goodwill                                                                                      812,366           812,366
   Intangible assets, net                                                                     15,027,195        16,081,635
   Other assets of discontinued operations                                                            --            47,975
   Other assets                                                                                  145,398           146,301
                                                                                            ------------      ------------
       TOTAL OTHER ASSETS                                                                     15,984,959        17,088,277
                                                                                            ------------      ------------
TOTAL ASSETS                                                                                $ 29,042,107      $ 26,633,712
                                                                                            ============      ============
                         LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
   Checks issued in excess of cash in bank                                                  $    196,571      $    234,348
   Short-term debt                                                                               510,000         4,481,099
   Wholesale line of credit                                                                           --           926,201
   Current portion of long-term debt                                                             886,497         1,524,527
   Current portion of note payable, stockholder                                                   32,837            84,801
   Current portion of capital lease obligations                                                  200,592           201,530
   Accounts payable                                                                            1,885,826         2,561,611
   Accrued liabilities                                                                         3,042,456         3,030,024
   Contingent liability                                                                          222,700           222,700
   Customer deposits                                                                              62,314            59,875
   Current liabilities of discontinued operations                                                500,000           370,921
   Deferred subscription revenue                                                                 503,728           406,738
                                                                                            ------------      ------------
      TOTAL CURRENT LIABILITIES                                                                8,043,521        14,104,375

LONG-TERM LIABILITIES
    Long-term debt, net                                                                        3,907,832         3,498,657
    Capital lease obligations, net of current portion                                            437,351           481,249
    Long term liabilities of discontinued operations                                             375,000                --
                                                                                            ------------      ------------
          TOTAL LIABILITIES                                                                   12,763,704        18,084,281
                                                                                            ------------      ------------
STOCKHOLDERS' EQUITY

Cumulative convertible preferred stock, no par value:                                                 --                --
  8% Class A (27,931 shares issued and outstanding, $293,276 liquidation preference)             419,752           419,752
  10% Class B (8,620 and 8,700 shares issued and outstanding, $90,510 and $91,350
liquidation preference)                                                                           61,200            62,000
  10% Class C (125,280 and 125,400 shares issued and outstanding, $1,252,800 and
$1,254,000 liquidation preference)                                                             1,609,905         1,611,105
  10% Class F (150,000 shares issued and outstanding, $1,500,000 liquidation
preference)                                                                                    1,500,000         1,500,000
  8% Class G (45,245  shares issued and outstanding, $452,450 liquidation preference)            179,897           179,897
  6% Class H (3.0 and 11.5 shares issued and outstanding, $300,000 and $1,150,000
liquidation preference)                                                                               --                --
  Variable rate Class I (100,000 shares issued and outstanding , $10,000,000
liquidation preference)                                                                               --                --
  Common stock, no par value (28,949,008 and 25,784,490 shares issued;
28,948,340 and 25,781,818 shares outstanding)                                                 18,651,632        16,888,291
  Stock subscriptions receivable                                                                (324,865)         (391,264)
   Options and warrants                                                                       44,468,270        32,985,983
   Unamortized compensation                                                                     (102,499)           (1,724)
   Accumulated deficit                                                                       (50,184,889)      (44,704,609)
                                                                                            ------------      ------------
         TOTAL STOCKHOLDERS' EQUITY                                                           16,278,403         8,549,431
                                                                                            ------------      ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                  $ 29,042,107      $ 26,633,712
                                                                                            ============      ============
</TABLE>

--------------------------------------------------------------------------------
            See notes to condensed consolidated financial statements.


                                                                          Page 3
<PAGE>

                     MULTIBAND CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                   FOR SIX MONTHS ENDED JUNE 30, 2005 AND 2004

<TABLE>
<CAPTION>
                                                                                            SIX MONTHS ENDED JUNE 30,
                                                                                         ------------------------------
                                                                                              2005              2004
                                                                                         ------------      ------------
                                                                                          (unaudited)       (unaudited)
<S>                                                                                      <C>               <C>
OPERATING ACTIVITIES
   Net loss                                                                              $ (3,879,562)     $ (2,968,339)
   Adjustments to reconcile net loss to net cash flows from operating activities
      Depreciation and amortization                                                         2,521,933         1,531,783
      Amortization of deferred compensation                                                    50,930           197,487
      Amortization of original issue discount                                                 667,350           348,178
      Gain on sale of business segment                                                       (103,491)               --
      Common stock issued for services                                                         20,580            19,887
      Changes in operating assets and liabilities:
        Accounts receivable, net                                                              908,785        (1,243,338)
        Inventories                                                                          (371,461)          419,343
        Other current assets                                                                   13,735            15,931
        Other assets                                                                               --           (36,870)
        Wholesale line of credit                                                           (1,000,987)          280,533
        Accounts payable and accrued liabilities                                           (1,612,842)         (106,407)
        Deferred service obligations and revenue                                               65,092            24,388
        Liabilities of discontinued operations                                               (125,000)               --
        Customer deposits                                                                       2,439                --
                                                                                         ------------      ------------
           Net cash flows from operating activities                                        (2,842,499)       (1,517,424)
                                                                                         ------------      ------------
INVESTING ACTIVITIES
   Purchases of property and equipment                                                       (415,065)         (240,413)
   Purchases of intangible asset                                                             (209,225)               --
   Purchase of Ultravision                                                                   (287,050)               --
   Purchase of Satellite Broadcasting Corporation                                                  --          (187,424)
   Purchase of Minnesota Digital Universe, Inc.                                                    --        (1,100,000)
   Purchase of Rainbow Satellite Group, LLC                                                        --        (1,000,000)
   Proceeds from sale of business segment                                                   1,682,184                --
   Proceeds from sale of property and equipment                                                    --               649
   Collections on notes receivable                                                                 --             5,320
                                                                                         ------------      ------------
           Net cash flows from investing activities                                           770,844        (2,521,868)
                                                                                         ------------      ------------
FINANCING ACTIVITIES
   Checks issued in excess of cash in bank                                                    (37,773)          324,037
   Payments on short-term debt                                                             (3,971,099)               --
   Payments on long-term debt                                                              (2,248,204)         (701,308)
   Payments on capital lease obligations                                                      (44,836)          (38,093)
   Payments on note payable to stockholder                                                    (51,964)          (49,970)
   Payments for debt issuance costs                                                           (25,000)               --
   Proceeds from issuance of stock and warrants                                            11,090,843         2,724,965
   Proceeds from issuance of long term debt                                                 2,000,000                --
   Exercise of warrants                                                                         6,960           390,279
   Payments received on stock subscriptions receivable                                         66,399                --
   Redemption of preferred stock                                                               (2,000)               --
   Preferred stock dividends                                                                  (31,224)          (41,799)
                                                                                         ------------      ------------
           Net cash flows from financing activities                                         6,752,102         2,608,111
                                                                                         ------------      ------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                            4,680,447        (1,431,181)
CASH AND CASH EQUIVALENTS
   Beginning of period                                                                        726,553         2,945,960
                                                                                         ------------      ------------
   End of period                                                                         $  5,407,000      $  1,514,779
                                                                                         ============      ============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
   Cash paid for interest, net of amortization of original issue discount                $    417,870           249,471
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES
   Note receivable recorded on sale of discontinued operations                                339,051                --
   Issuance of common stock for acquisition of assets                                              --           274,800
   Conversion of preferred stock into common stock                                            850,001                --
   Current liabilities converted to common stock                                               46,603            48,001
   Conversion of notes payable into common stock                                              648,001           510,908
   Conversion of dividend into common stock                                                   176,935            78,591
   Common stock issued in lieu of cash for other current assets                               218,000                --
   Issuance of common stock for deferred financing costs                                       36,000                --
   Issuance of common stock for acquisition of assets - MDU                                        --         4,120,152
   Issuance of preferred stock for acquisition of assets - Rainbow                                 --         2,000,000
   Issuance of preferred stock for acquisition of assets - SBC                                     --           270,152
   Issuance of common stock and notes payable for acquisition of assets - MDU                      --         6,600,000
   Issuance of preferred stock and notes payable for acquisition of assets - Rainbow               --         6,519,999
   Common stock issued for services                                                                --           307,571
</TABLE>

            See notes to condensed consolidated financial statements


                                                                          Page 4
<PAGE>

                     MULTIBAND CORPORATION AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             JUNE 30, 2005 AND 2004

--------------------------------------------------------------------------------
Note 1 - Unaudited Consolidated Financial Statements
--------------------------------------------------------------------------------

The  information  furnished  in  this  report  is  unaudited  and  reflects  all
adjustments which are normal recurring  adjustments and, which in the opinion of
management,  are  necessary  to fairly  present  the  operating  results for the
interim periods. The operating results for the interim periods presented are not
necessarily  indicative  of the  operating  results to be expected  for the full
fiscal year.

--------------------------------------------------------------------------------
NOTE 2 - Summary of Significant Accounting Policies
--------------------------------------------------------------------------------

    Nature of Business

Multiband  Corporation and subsidiaries,  formerly known as Vicom,  Incorporated
and subsidiaries, (the Company) was incorporated in Minnesota in September 1975.
The Company  provides  voice,  data and video  services to  multi-dwelling  unit
customers.  The  Company's  products and services are sold to customers  located
throughout the United States of America.

The accompanying  consolidated  financial statements have been prepared assuming
the Company will continue as a going concern that  contemplates  the realization
of assets and satisfaction of liabilities in the normal course of business.  For
the six months ended June 30, 2005 and 2004, the Company  incurred net losses of
$3,879,562  and  $2,968,339  respectively.  At June 30, 2005, the Company had an
accumulated deficit of $50,184,889. The Company's ability to continue as a going
concern is dependent on it ultimately  achieving  profitability  and/or  raising
additional  capital.  On February 3, 2005,  the Company  completed a $10 million
private  placement of the Company's  Series I Convertible  Preferred Stock which
includes  $520,000 of offering costs.  Management  intends to obtain  additional
debt or equity  capital to meet all of its existing  cash  obligations  and fund
commitments on planned Multiband  projects;  however,  there can be no assurance
that the sources  will be  available  or  available  on terms  favorable  to the
Company. Management anticipates that the impact of the actions listed below will
generate  sufficient cash flows to pay current  liabilities,  long-term debt and
capital lease obligations and fund the Company's future operations:

1.  Continued   reduction  of  operating   expenses  by   controlling   payroll,
professional fees and other general and administrative expenses.
2.  Solicit  additional  equity  investment  in the  Company  by either  issuing
preferred or common  stock.  The Company,  in February  2005 issued  $10,000,000
worth of Class I Preferred Stock to a group of accredited investors.
3. Continue to market Multiband services and acquire  additional  multi-dwelling
unit customers.
4. Control capital expenditures by contracting  Multiband services and equipment
through a landlord-owned equipment program.
5. Establish market for wireless internet services.
6. Discontinuation of Multiband business services segment which was unprofitable
in 2004.  This segment was sold effective  after the close of business March 31,
2004.


                                                                          Page 5
<PAGE>
                     MULTIBAND CORPORATION AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             JUNE 30, 2005 AND 2004

    Principles of Consolidation

The  consolidated   financial  statements  include  the  accounts  of  Multiband
Corporation (MB) and its wholly owned subsidiaries, Corporate Technologies, USA,
Inc. (CTU), URON, Inc., Minnesota Digital,  Inc. (MDU), Rainbow Satellite Group,
LLC (Rainbow) and Multiband Subscriber Services, Inc. (Multiband) which provides
voice, data and video services to residential  multi-dwelling units. In February
2003,  the Company formed a 50% owned  subsidiary,  Multiband USA, Inc. (MB USA)
with Pace  Electronics,  Inc. (PACE) a video  wholesaler,  and provides the same
services as Multiband).  On January 1, 2004, the Company  purchased the 50% PACE
interest  in  Multiband  USA.  All  significant  intercompany  transactions  and
balances have been eliminated in consolidation.

On January 1, 2004, the Company merged Multiband into CTU. On April 1, 2005, the
continuing operations of CTU terminated (see Note 9.)

    Discontinued Operations

During  the  first  quarter  of  2005,  the  Company  sold  certain  assets  and
transferred  certain  liabilities  related to its  Multiband  Business  Services
(a/k/a CTU). The Company began  discussions  and efforts to sell these assets in
the fourth quarter of 2004.  These assets met the  requirements  of Statement of
Financial  Accounting  Standards No. 144, "Accounting for Impairment or Disposal
of  Long-Lived  Assets" as being held for sale.  Operations  and cash flows were
eliminated as a result of the sale and the Company will not have any significant
involvement in the  operations  after the sale. In accordance  with  appropriate
accounting rules, the Company has reclassified the previously reported financial
results to exclude  the results of the  Multiband  Business  Services  (CTU) and
these  results are  presented  on a historical  basis as a separate  line in the
consolidated  statements  of  operations  and the  consolidated  balance  sheets
entitled  "Discontinued  Operations".  All of the financial  information  in the
consolidated  financial  statements  and  notes  to the  consolidated  financial
statements has been revised to reflect only the results of continuing operations
(see Note 9). Based on the  discussions  and efforts to sell these  assets,  the
Company  determined,  based on the final  purchase price which was arrived at in
the first quarter of 2005,  it was required to take an impairment  charge to the
goodwill of the Multiband Business Services division. As a result, an impairment
charge  related to goodwill of $2,221,000  was recorded in the fourth quarter of
2004.

    Revenues and Cost Recognition

The  Company  recognizes  revenue in  accordance  with the  Securities  Exchange
Commission's Staff Accounting Bulletin No. 104 (SAB 104) "Revenue  Recognition",
which requires that four basic criteria be met before revenue can be recognized:
(i)  persuasive  evidence of a customer  arrangement  exists;  (ii) the price is
fixed or determinable;  (iii)  collectibility  is reasonably  assured;  and (iv)
product  delivery  has  occurred or  services  have been  rendered.  The Company
recognizes revenue (included in discontinued operations) as products are shipped
based on FOB shipping point terms when title passes to customers.

The Company earns  revenues from six sources:  1) Video and computer  technology
products  which  are  sold  but  not  installed,   2)  Voice,   video  and  data
communication products which are sold and installed, 3) Service revenues related
to communication products which are sold and both installed and not installed 4)
Multiband  user  charges to  multiple  dwelling  units 5) voice,  data and video
revenue directly generated by the Company as a principal to subscribers,  and 6)
DirecTV master service operator revenue earned primarily  through the activation
of and residual fees on video programming services.


                                                                          Page 6
<PAGE>

                     MULTIBAND CORPORATION AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             JUNE 30, 2005 AND 2004

Revenues  from video and computer  technology  products,  which are sold but not
installed, are recognized when delivered and the customer has accepted the terms
and has the ability to fulfill the terms. Product returns and customer discounts
are netted against  revenues.  This revenue has been included with  discontinued
operations.

Customer's  contract for both the purchase  and  installation  of voice and data
networking  technology  products and certain video technologies  products on one
sales   agreement,   as   installation  of  the  product  is  essential  to  the
functionality  of the  product.  Revenue is  recognized  when the  products  are
delivered  and  installed  and the  customer  has accepted the terms and has the
ability to fulfill the terms.  This revenue has been included with  discontinued
operations.

Substantially all of the service revenue the Company had in the past was part of
the business  segment,  Multiband  Business  Services,  which was sold effective
after  business  hours  on March  31,  2005.  Service  revenues  for  continuing
operations  accounted for less than 10% of total  revenues for the three and six
months ended June 30, 2005 and 2004.

Revenue generated from activation on video programming services is earned in the
month of activation.  According to the Company's  agreement with DirecTV, in the
event that a customer cancels within the first 12 months of service, DirecTV has
the right to  chargeback  the  Company  for a  portion  of the  activation  fees
received. In accordance with Securities Exchange Commission SAB 104, the Company
has estimated the potential  charge back of  commissions  received on activation
fees  during the past 12 months  based on  historical  percentages  of  customer
cancellations  and has included that amount as a reduction of revenue.  Residual
income is earned  as  services  are  provided  by  DirecTV  through  its  system
operators.  As a master system  operator for DirecTV,  the Company earns a fixed
percentage based on net cash received by DirecTV for recurring  monthly services
and a variable  amount  depending on the number of activations in a given month.
The  Company's  master  system  operator  contract with DirecTV also permits the
Company to earn revenues  through its control of other system  operators who are
unable to provide  DirecTV  video  programming  services  without the  Company's
performance.

The Company has determined that the accounting  policies for income  recognition
described above were in accordance with the Financial Accounting Standards Board
Emerging Issues Task Force ("EITF") Issue No. 99-19, "Reporting Revenue Gross as
a Principal versus Net as an Agent".  EITF No. 99-19 employs  multi-factor tests
to determine whether amounts charged to customers in respect of certain expenses
incurred should be included in revenues or netted against such expenses.

The  Company  reports  the  aforementioned  voice,  data and  video  programming
revenues on a gross basis based on the  following  factors:  the Company has the
primary  obligation in the arrangement with its customers;  the Company controls
the pricing of its  services;  the  Company  performs  customer  service for the
agreements;  the Company approves customers; and the Company assumes the risk of
payment for services  provided.  The Company  reports  DirecTV  revenue on a net
basis.

Multiband,  Rainbow,  MDU and MB USA user charges are  recognized as revenues in
the period the related services are provided in accordance with SAB 104.

Warranty costs incurred on new product sales are substantially reimbursed by the
equipment suppliers.

    Goodwill and Other Intangible Assets

Impairment of Goodwill

We  periodically   evaluate   acquired   businesses  for  potential   impairment
indicators.  Our judgements regarding the existence of impairment indicators are
based on legal factors,  market  conditions and  operational  performance of our
acquired  businesses.  Future events could cause us to conclude that  impairment
indicators  exist and that goodwill  associated with our acquired  businesses is
impaired.  Any resulting impairment loss could have a material adverse impact on
our  financial  condition  and  results  of  operations.   Goodwill  related  to
continuing operations was $812,366 at both June 30, 2005 and December 31, 2004.


                                                                          Page 7
<PAGE>

                     MULTIBAND CORPORATION AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             JUNE 30, 2005 AND 2004

Components of intangible assets are as follows:

<TABLE>
<CAPTION>
                                                          June 30, 2005                 December 31, 2004
                                                  ----------------------------    ----------------------------
                                                     Gross                          Gross
                                                    Carrying      Accumulated      Carrying        Accumulated
                                                     Amount       Amortization      Amount        Amortization
                                                  -----------     ------------    -----------     ------------
<S>                                               <C>             <C>             <C>             <C>
Intangible assets subject to amortization
     Domain name                                  $    83,750     $    64,207     $    83,750     $    55,833
     Access contracts                                  60,000          43,333          60,000          33,333
     Debt issuance costs                              499,837         145,225         313,837          47,214
     Right of entry                                17,435,984       3,375,020      17,226,759       1,933,294
     Customer cable lists                           1,019,119         443,710         753,930         286,967
                                                  -----------     -----------     -----------     -----------
         Total                                    $19,098,690     $ 4,071,495     $18,438,276     $ 2,356,641
                                                  ===========     ===========     ===========     ===========
Intangible assets not subject to amortization
     Goodwill                                     $   812,366     $        --     $   812,366     $        --
                                                  ===========     ===========     ===========     ===========
</TABLE>

The Company amortizes a domain name over its estimated useful life of five years
using the  straight-line  method.  The Company  amortizes  access  contracts and
customer cable lists over their useful  estimated lives ranging from two to five
years.  The  Company  is  amortizing  the right of entry  contracts  over  their
estimated  useful lives ranging from 36 to 73 months.  Debt  issuance  costs are
amortized  over the life of the loan of  approximately  three  years  using  the
straight-line method, which approximates the interest method.

Amortization of intangible assets was $849,730 and $969,185 for the three months
ended June 30, 2005 and 2004,  respectively.  For the six months  ended June 30,
2005 and 2004,  amortization of intangible assets was $1,714,854 and $1,163,648,
respectively.  Amortization  of debt issuance  costs of $98,011,  is included in
interest expense.  Estimated  amortization  expense of intangible assets for the
years ending December 31, 2005,  2006,  2007, 2008, 2009 and 2010 is $3,459,762,
$3,217,718, $3,036,976, $2,986,738, $2,895,384 and $1,070,429, respectively. The
weighted  average  remaining life of the  intangibles is 5.5 years with right of
entry average life of 6.0 years and customer cable lists of 2.6 years.


                                                                          Page 8
<PAGE>
                     MULTIBAND CORPORATION AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             JUNE 30, 2005 AND 2004

    Stock-Based Compensation

In accordance with Accounting  Principles Board (APB) Opinion No. 25 and related
interpretations, the Company uses the intrinsic value-based method for measuring
stock-based compensation cost which measures compensation cost as the excess, if
any, of the quoted market price of the Company's  common stock at the grant date
over the  amount the  employee  must pay for the stock.  The  Company's  general
policy is to grant stock options at fair value at the date of grant. Options and
warrants issued to nonemployees  are recorded at fair value, as required by SFAS
No. 123  "Accounting for Stock-Based  Compensation,"  (SFAS No. 123),  using the
Black  Scholes  pricing  model.  The Company has  adopted  the  disclosure  only
provision of SFAS No. 148, "Accounting for Stock-Based Compensation."

Pursuant  to  APB  No.  25  and  related  interpretations,  $0  and  $99,774  of
compensation   cost  has  been  recognized  in  the  accompanying   consolidated
statements  of  operations  for the three  months  ended June 30, 2005 and 2004,
respectively.  For the six months ended June 30, 2005 and 2004,  $0 and $212,415
of compensation cost has been recognized.  Had compensation cost been recognized
based on the fair  values of  options  at the grant  dates  consistent  with the
provisions  of  SFAS  No.  123,  the  Company's  loss   attributable  to  common
stockholders and basic and diluted loss per common share would have increased to
the following pro forma amounts for the three and six months ended June 30:

<TABLE>
<CAPTION>
                                                    Three months     Three months     Six months       Six months
                                                       ended             ended           ended            ended
                                                   June 30, 2005    June 30, 2004    June 30, 2005    June 30, 2004
                                                   -------------    -------------    -------------    -------------
<S>                                                <C>              <C>              <C>              <C>
Loss attributable to common stockholders            $(1,965,988)     $(1,846,747)     $(5,480,280)     $(3,426,265)
Pro forma loss attributable to common shares        $(2,050,813)     $(2,212,473)     $(5,865,199)     $(3,921,299)

Basic and diluted loss attributable to
   common shareholders:
   As reported                                      $      (.07)     $     (0.08)     $      (.20)     $      (.16)
   Pro forma loss attributable to common shares     $      (.07)     $     (0.10)     $      (.21)     $      (.19)

Stock-based compensation:
   As reported                                      $         0      $    99,774      $         0      $   212,415
   Pro forma                                        $    84,825      $   365,726      $   384,919      $   495,034
</TABLE>

In determining the compensation cost of the options granted during the three and
six months ended June 30, 2005 and 2004,  as specified by SFAS No. 123, the fair
value of each  option  grant has been  estimated  on the date of grant using the
Black-Scholes  option pricing model and the weighted average assumptions used in
these calculations are summarized as follows:

<TABLE>
<CAPTION>
                                           Three months      Three months        Six months       Six months
                                               ended             ended              ended           ended
                                           June 30, 2005     June 30, 2004      June 30, 2005   June 30, 2004
                                           -------------     -------------      -------------   -------------
<S>                                        <C>               <C>                <C>             <C>
Risk-free interest rate                        3.75%             3.50%              3.57%            3.50%
Expected life of options granted             10 Years          10 Years           10 years         10 years
Expected volatility range                      208%              184%               211%             184%
Expected dividend yield                         0%                0%                 0%               0%
</TABLE>


                                                                          Page 9
<PAGE>
                     MULTIBAND CORPORATION AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             JUNE 30, 2005 AND 2004

    Net Loss per Common Share

Basic net loss per common share is computed by dividing the loss attributable to
common  stockholders by the weighted average number of common shares outstanding
for the  reporting  period.  Diluted  net loss per common  share is  computed by
dividing loss  attributable  to common  stockholders  by the sum of the weighted
average number of common shares  outstanding  plus all  additional  common stock
that would have been  outstanding if potentially  dilutive common shares related
to  common  share  equivalents  (stock  options,  stock  warrants,   convertible
preferred  shares,  and issued but not  outstanding  restricted  stock) had been
issued.  All options,  warrants,  convertible  preferred shares,  and restricted
stock  outstanding  during the three and six months ended June 30, 2005 and 2004
were anti-dilutive.

    Segment Reporting

A business  segment is a  distinguishable  component  of an  enterprise  that is
engaged  in  providing  an  individual  product or service or a group of related
products or services and that is subject to risks and returns that are different
from those of other business segments.  Management believes that the Company has
two operating segments: 1) MCS, which acts as a principal in billing voice, data
and cable revenues to  subscribers;  and 2) MDU, Inc. which collects net revenue
from DirecTV.

    Reclassifications

Certain accounts in the prior quarters'  consolidated  financial statements have
been reclassified for comparative purposes to conform to the presentation in the
current quarter consolidated financial statements.  These  reclassifications had
no effect on net loss or stockholders' equity.

    Recent Accounting Pronouncements

In June 2005, the Financial  Accounting  Standards Board (FASB) issued Statement
of Financial  Accounting Standards (SFAS) No. 154, "Accounting Changes and Error
Corrections",  a replacement of APB Opinion No. 20 and FASB Statement No. 3. The
statement applies to all voluntary changes in accounting principle,  and changes
the  requirements  for  accounting  for and  reporting of a change in accounting
principle.  SFAS No. 154 requires  retrospective  application  to prior periods'
financial  statements of a voluntary change in accounting principle unless it is
impracticable.  SFAS No. 154 is effective for accounting changes and corrections
of errors made in fiscal  years  beginning  after  December  15,  2005.  Earlier
application is permitted for accounting  changes and  corrections of errors made
occurring in fiscal years  beginning  after June 1, 2005. The statement does not
change the  transition  provisions  of any existing  accounting  pronouncements,
including those that are in a transition  phase as of the effective date of this
statement.  The Company  does not expect the  adoption of SFAS No. 154 to have a
material effect on its consolidated financial statements.

In  December  2004,  FASB  issued  SFAS No.  123  (revised  2004),  "Share-Based
Payment",  which focuses  primarily on accounting for  transactions  in which an
entity obtains  employee  services in  share-based  payment  transactions.  This
statement replaces SFAS No. 123, "Accounting for Stock-Based Compensation",  and
supersedes  APB  Opinion No. 25,  "Accounting  for Stock  Issued to  Employees."
Beginning  with the quarterly  period that begins July 1, 2005, the Company will
be  required to expense  the fair value of  employee  stock  options and similar
awards.  As a  public  company,  the  Company  is  allowed  to  select  from two
alternative  transition methods,  each having different reporting  implications.
The impact of SFAS No. 123R for the year ending  December  31, 2005 is estimated
to range from  approximately  $150,000  and  $200,000  based on the value of the
options  outstanding as of December 31, 2004 that will vest during the third and
fourth quarters of 2005. This estimate does not include any expenses for options
that may be granted and vested during 2005.

--------------------------------------------------------------------------------
NOTE 3 - Business Acquisitions
--------------------------------------------------------------------------------

On January 1, 2004,  the Company  entered into a stock  purchase  agreement with
URON, Inc. (URON) to purchase all of the outstanding capital stock of URON for a
total  purchase  price of 350,000  shares of the  Company's  common  stock to be
issued in  installments  as follows:  a) 180,000  shares  issued at closing,  b)
170,000  shares  held in escrow.  The common  shares  were valued at fair market
value on the date of agreement which was $1.31 per share for a purchase price of
$458,500.  The terms of the escrow are as follows:  50,000 shares to be released
upon URON providing the Company with  documentation  satisfactory to the Company
of a release  from a certain  vendor or any  related  entity of all  liabilities
incurred to a certain  vendor by URON;  120,000  shares to be released in 40,000
share  increments  upon the Company's  receipt of  distributable  gross profits,
generated by certain customers,  in increments of $75,000 cash. The escrow shall
be  terminated  24 months  after the date of the  agreement  and any  shares not
released will be rescinded to the Company.  The Company must register all shares
issued within one year from the date of issuance. The reason for the purchase of
URON is to continue to expand the Company's services related to voice, data, and
video services. The purchase price of $458,500 was allocated to customer list of
$453,930  and  property  and  equipment  of $4,570.  The  customer  list will be
amortized  over its  estimated  useful  lives of two years and the  property and
equipment  for fifteen  months.  At June 30, 2005 and  December  31,  2004,  the
Company was not obligated to issue any of the contingent shares of common stock.


                                                                         Page 10
<PAGE>
                     MULTIBAND CORPORATION AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             JUNE 30, 2005 AND 2004

In April 2004, the Company purchased certain assets consisting of data and video
subscribers and systems from Satellite  Broadcasting  Corporation and affiliates
(SBC). The total purchase price for said assets was approximately $679,200.

On April 2, 2004,  Multiband  Corporation and subsidiaries  (the Company),  (fka
Vicom,  Incorporated and  subsidiaries),  completed its acquisition of Minnesota
Digital  Universe,  Inc. (MDU) for  approximately  7.7 million dollars,  half of
which was paid for in Multiband  Corporation  common stock,  valued at $1.75 per
share,  ($3,850,000),  $1.1 million  paid in cash and the balance in  promissory
notes due by January 2005. Included in the purchase price is $700,000 related to
a finder's  fee.  In December  2004,  the notes with an  outstanding  balance of
$990,000 were extended  through May 2005; with $200,000 of the outstanding  note
balance  being  extended  to July 2006.  These notes are  unsecured  and bear no
interest.  The stock  value was a  negotiated  price  between the Seller and the
Buyer.  The  consideration  paid was based on the  Company's  analysis of likely
future  net  income  to be  generated  over a six year  period  by the  acquired
company.  The cash was provided by funds the Company had previously  raised in a
private placement. The assets were acquired from Pace Electronics.  Prior to the
transaction,  there was no material  relationship  between the owners of MDU and
the Company  other than the fact that Pace  Electronics  previously  owned a 50%
interest in a company  subsidiary,  Multiband USA, Inc.,  which Multiband bought
out the remaining  50% of ownership  from Pace  Electronics  in January 2004 for
30,000 shares of the Company's common stock valued at $39,000.

With the MDU acquisition, the Company became a nationwide agent for DirecTV. MDU
services  nearly  40,000 video  subscribers  through a network of private  cable
operators  located  throughout the United States.  The purchase also permits the
Company to receive ongoing  residual  payments from DirecTV,  during the term of
the  master  system  operator  agreement  with  DirecTV,   which  initially  had
approximately 25 months remaining at the time of purchase.

On July 9, 2004, Multiband (the Company) completed its acquisition, which had an
acquisition  date of June 1, 2004, of the  outstanding  membership  interests of
Rainbow  Satellite  Group,  LLC  (Rainbow),  a provider of Satellite  television
services to multi dwelling units, for  approximately  7.5 million  dollars,  two
million of which was paid for in Multiband  Preferred Stock, valued at $2.00 per
share on a conversion  formula to Multiband common stock, one million dollars of
which was paid for in cash and the  balance in  promissory  notes due by January
2005. In December  2004,  these notes were extended to May 31, 2005 and paid off
in full as of that date. Included in the purchase price is $321,850 related to a
finders fee. These notes are  collateralized by Rainbow assets and bear interest
at the prime rate. In connection  with the debt  extension,  the Company  issued
75,000 two year warrants with an exercise price of $1.35 valued at $68,652 using
the Black Scholes pricing model.  The stock value was a negotiated price between
the Buyer and  Seller.  In the event  Multiband  defaults in the payment of said
promissory notes, the former owners of Rainbow have certain rights to repurchase
the aforementioned membership interests for 20% less than any sums Multiband has
paid prior to the date of the default.  The consideration  paid was based on the
Company's  analysis of likely future net incomes to be generated over a six year
period by the acquired  Company.  The cash was provided by funds  Multiband  had
previously raised in a private placement.  The aforementioned  purchase price is
subject to adjustment pursuant to the parties agreement if the number of Rainbow
subscribers  increases or decreases as of an  adjustment  date.  The assets were
acquired from the members/owners of Rainbow. Prior to the transaction, there was
no material  relationship  between the owners of sellers and the  Company.  With
this  acquisition,  the Company acquired over 16,000 video subscribers which are
primarily  located in California,  Colorado,  Texas,  Florida,  Illinois and New
York.


                                                                         Page 11
<PAGE>
                     MULTIBAND CORPORATION AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             JUNE 30, 2005 AND 2004

On August 9, 2004, Multiband Corporation (the Company) completed its acquisition
of certain assets of 21st Century Satellite Communications,  Inc. (21st Century)
for $1,080,754, $333,333 of which was paid for in Company stock, valued at $1.60
per share,  $250,000 of which was paid for in cash and the balance in  equipment
lease  payments  due by August  2007.  The stock  value was a  negotiated  price
between the Buyer and Seller.  The consideration paid was based on the Company's
analysis  of the  value  of the  acquired  video  equipment  and  related  video
subscribers  totaling  approximately  5,000.  The  cash  was  provided  by funds
Multiband had previously raised in a private  placement.  In connection with the
acquisition,  the Company  incurred a $125,000  finder's fee which was partially
paid for in  Company  stock,  valued  at $1.42 for a total of  $31,250,  and the
remaining $93,750 was paid in cash by December 31, 2004.

Effective April 1, 2005, the Company  purchased  certain video assets (equipment
and video  subscribers)  from  Ultravision,  Inc. for $287,050 cash  including a
finder's fee of $12,050.

With these acquisitions,  the Company has substantially increased its subscriber
base.

<TABLE>
<CAPTION>
                                               MDU           Rainbow     21st Century
                                            ----------     ----------    ------------
<S>                                         <C>            <C>           <C>

Allocation of Purchase Price:

Total Cash/Stock Consideration              $7,000,000     $7,219,999     $  987,000
     Add: Transaction Costs                    726,550        361,850         93,754
     Add:  Liabilities assumed               2,030,373        319,921             --
                                            ----------     ----------     ----------
Total Consideration                          9,756,923      7,901,770      1,080,754
     Less: Cash and accounts receivable         59,044             --             --
     Less: Tangible assets                          --        773,000        372,420
     Less: Goodwill                                 --        800,000             --
                                            ----------     ----------     ----------
Intangible assets, net                      $9,697,879     $6,328,770     $  708,334
                                            ==========     ==========     ==========
</TABLE>

Goodwill  was  recorded  on the Rainbow  transaction  based on a six year future
projection of cash flows which  indicated that those future cash flows would not
equal or exceed total  consideration paid for all intangible Rainbow assets. The
goodwill is anticipated to be deductible for tax purposes.

         The following  unaudited pro forma condensed  results of operations for
the  three  and six  months  ended  June 30,  2005 and 2004  give  effect to the
acquisition  of MDU,  Rainbow,  and 21st  Century  as if such  transactions  had
occurred on January 1, 2004.


                                                                         Page 12
<PAGE>
                     MULTIBAND CORPORATION AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             JUNE 30, 2005 AND 2004

         The unaudited pro forma  information does not purport to represent what
the  Company's   results  of  operations   would  actually  have  been  if  such
transactions  in fact had  occurred  at such date or to  project  the  Company's
results of future operations.

<TABLE>
<CAPTION>
                                                        2005              2005             2004              2004
                                                    Consolidated       Pro Forma        Consolidated       Pro Forma
                                                     as reported       Disclosed        as reported        Disclosed
                                                    ------------      ------------      ------------      ------------
<S>                                                 <C>               <C>               <C>               <C>
Three months ended June 30, 2005 and 2004
Revenues                                            $  4,183,606      $  5,187,466      $  2,911,261      $  3,748,339

Loss from continuing operations                       (1,419,246)       (1,438,471)       (1,271,611)       (1,252,345)

Income (loss) from discontinued operations               122,892           122,892          (179,863)         (179,863)

Net loss                                            $ (1,296,354)     $ (1,315,579)     $ (1,451,474)     $ (1,432,208)

Basic and diluted loss per share:
   Loss from continuing operations                  $       (.05)     $       (.05)     $       (.06)     $       (.05)
   Loss from discontinued operations                $       (.00)     $       (.00)     $       (.00)     $       (.01)
   Net loss                                         $       (.05)     $       (.05)     $       (.06)     $       (.06)

Weighted average shares outstanding - basic and
diluted                                               28,634,502        28,634,502        22,689,301        22,689,301
</TABLE>

<TABLE>
<CAPTION>
                                                        2005               2005             2004             2004
                                                    Consolidated        Pro Forma       Consolidated       Pro Forma
                                                     as reported        Disclosed        as reported       Disclosed
                                                    ------------        ----------      ------------      ------------
<S>                                                 <C>                 <C>             <C>               <C>
Six months ended June 30, 2005 and 2004
Revenues                                            $  7,890,482        11,861,857      $  3,673,916      $  6,708,234

Loss from continuing operations                       (3,561,186)       (3,417,285)       (2,314,788)       (2,278,876)

Loss from discontinued operations                       (318,376)         (318,376)         (653,551)         (653,551)

Net loss                                            $ (3,879,562)       (3,735,661)     $ (2,968,339)     $ (2,968,239)

Basic and diluted loss per share:
   Loss from continuing operations                  $       (.13)     $       (.12)     $       (.11)     $       (.11)
   Loss from discontinued operations                $       (.01)     $       (.01)     $       (.03)     $       (.03)
   Net loss                                         $       (.14)     $       (.13)     $       (.14)     $       (.14)

Weighted average shares outstanding - basic and
diluted                                               27,929,454        27,929,454        20,984,967        20,984,967
</TABLE>


                                                                         Page 13
<PAGE>
                     MULTIBAND CORPORATION AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             JUNE 30, 2005 AND 2004

The unaudited pro forma results of operations for the three and six months ended
June 30,  2005 and 2004 as a result of the SBC,  Florida  Cable and  Ultravision
acquisitions  of video  subscribers  and video  equipment is not material to the
historical financial statements.

--------------------------------------------------------------------------------
NOTE 4 - Stockholder Equity
--------------------------------------------------------------------------------

Stock warrants activity is as follows for the six months ended June 30, 2005:

<TABLE>
<CAPTION>
                                                 Number of Warrants     Weighted - Average Exercise Price
                                                 ------------------     ---------------------------------
<S>                                              <C>                    <C>
Outstanding, December 31, 2004                        11,795,641                     1.64
      Granted                                          8,882,723                     1.70
      Exercised                                          (33,066)                     .91
      Cancelled                                       (1,611,219)                    1.80
                                                    ------------                   ------
Outstanding, June 30, 2005                            19,034,079                     1.66
                                                    ============                   ======
</TABLE>

The warrants  granted  during the six months ended June 30, 2005 were for common
and preferred stock purchased and for services rendered.

--------------------------------------------------------------------------------
NOTE 5 - Accrued Liabilities
--------------------------------------------------------------------------------

Accrued liabilities consisted of the following:

<TABLE>
<CAPTION>
                                                    June 30, 2005   December 31, 2004
                                                    -------------   -----------------
<S>                                                 <C>             <C>
Payroll and related taxes                             $  320,387       $  389,394
Accrued preferred stock dividends                     $  975,858       $  415,120
Accrued liability-vendor charge backs                 $1,347,673       $1,901,972
Other                                                 $  398,538       $  323,538
                                                      ----------       ----------
Total                                                 $3,042,456       $3,030,024
                                                      ==========       ==========
</TABLE>


                                                                         Page 14
<PAGE>
                     MULTIBAND CORPORATION AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             JUNE 30, 2005 AND 2004

--------------------------------------------------------------------------------
NOTE 6 - Business Segments
--------------------------------------------------------------------------------

The  Company has the  following  business  segments.  Multiband  Corp.  includes
corporate  expenses (e.g.  corporate  administrative  costs),  interest  income,
interest  expense,  depreciation and  amortization.  The MDU segment  represents
results as the master  service  operator for DirecTV.  The MCS segment  provides
voice,  data and  video  services  to  residential  multi-dwelling  units as the
principal to  subscribers.  The  discontinued  operations  segment  includes the
Multiband  Business Services segment which was sold effective after the close of
business March 31, 2005 (see note 9).

Segment disclosures are as follows:

<TABLE>
<CAPTION>
                                        Multiband                                          Discontinued
                                          Corp.              MDU              MCS           Operations          Total
                                      ------------      ------------     ------------      ------------     ------------
Three months ended June 30, 2005:
<S>                                   <C>               <C>              <C>               <C>              <C>
   Revenues                           $         --      $  2,102,459     $  2,081,147      $         --     $  4,183,606
   Income (loss) from operations        (1,058,495)        1,029,527       (1,390,278)               --       (1,419,246)
   Identifiable assets                   8,072,968         8,807,922       12,072,166                --       28,953,056
   Depreciation and amortization            63,927           401,079          753,861                --        1,218,867
   Capital expenditures                      5,429                --          268,486                --          273,915

<CAPTION>
                                        Multiband                                          Discontinued
                                          Corp.              MDU              MCS           Operations          Total
                                      ------------      ------------     ------------      ------------     ------------
Three months ended June 30, 2004:
<S>                                   <C>               <C>              <C>               <C>              <C>
   Revenues                           $         --      $  1,875,664     $  1,035,597      $         --     $  2,911,261
   Income (loss) from operations          (859,186)          124,351         (536,776)               --       (1,271,611)
   Identifiable assets                   4,322,547        10,271,773       10,943,051         4,977,005       30,514,376
   Depreciation and amortization           389,663           400,495          360,519                --        1,150,677
   Capital expenditures                         --                --          128,947            71,807          200,754

<CAPTION>
                                        Multiband                                          Discontinued
                                          Corp.              MDU              MCS           Operations          Total
                                      ------------      ------------     ------------      ------------     ------------
Six months ended June 30, 2005:
<S>                                   <C>               <C>              <C>               <C>              <C>
   Revenues                           $                 $  4,013,963     $  3,876,519      $         --        7,890,482
   Income (loss) from operations        (2,280,292)        1,339,296       (2,620,190)               --       (3,561,186)
   Identifiable assets                   8,072,968         8,807,922       12,072,166                --       28,953,056
   Depreciation and amortization            71,771           802,158        1,493,805                --        2,367,734
   Capital expenditures                      5,429                --          371,278            38,358          415,065

<CAPTION>
                                        Multiband                                          Discontinued
                                          Corp.              MDU              MCS           Operations          Total
                                      ------------      ------------     ------------      ------------     ------------
Six months ended June 30, 2004:
<S>                                   <C>               <C>              <C>               <C>              <C>
   Revenues                           $         --         1,875,664        1,798,252      $         --        3,673,916
   Income (loss) from operations        (1,544,148)          124,351         (894,991)               --       (2,314,788)
   Identifiable assets                   4,322,547        10,271,773       10,943,051         4,977,005       30,514,376
   Depreciation and amortization           520,294           400,495          582,133                --        1,502,922
   Capital expenditures                      6,690                --          135,082            98,641          240,413
</TABLE>


                                                                         Page 15
<PAGE>
                     MULTIBAND CORPORATION AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             JUNE 30, 2005 AND 2004

Segment  disclosures are provided by entity to the extent  practicable under the
Company's  accounting  system.  Depreciation  and  amortization  above  does not
include  depreciation and amortization related to discontinued  operations.  The
cash flow statements  presentation of depreciation and amortization includes the
depreciation and amortization from discontinued operations.

--------------------------------------------------------------------------------
NOTE 7 - Commitments and Contingencies
--------------------------------------------------------------------------------

Legal Proceedings

The Company,  in June 2005,  settled its legal  action with  Private  Investor's
Equity Group (PIEG).  The terms of the settlement  require Multiband to pay PIEG
$150,000  over an eleven month period and issue PIEG 33,334 shares of restricted
Multiband common stock. The shares were valued at $36,000 using the market value
on the  settlement  date.  As of  June  30,  2005,  with  the  exclusion  of the
aforementioned  PIEG  matter,  Multiband  was not engaged in any  pending  legal
proceedings where, in the opinion of the Company,  the outcome is likely to have
a material  adverse  effect upon the business,  operating  results and financial
condition of the Company.

The Company is involved in legal actions in the ordinary course of its business.
Management  believes  that there are no  pending  legal  proceedings  against or
involving the Company for which the outcome is likely to have a material adverse
effect  upon  the  Company's   consolidated   financial  position,   results  of
operations, or cash flows.

Significant Relationship

The  Company  is a master  agent  for  DirecTV  pursuant  to a  system  operator
agreement  with DirecTV dated May 22, 2003. The initial term of the agreement is
for three years and provides for two additional two-year renewals if the Company
has a minimum number of paying video subscribers in its system operator network.
Termination of the Company's  DirecTV  agreement  would have a material  adverse
impact on the Company's  on-going  operations.  Revenues  generated from DirecTV
were 50.3 % and 50.9% of total  revenues for the three and six months ended June
30, 2005,  respectively.  Revenues  generated from DirecTV for the three and six
months ended June 30, 2004 were 64.4% and 51.0% of total revenues.

--------------------------------------------------------------------------------
NOTE 8 - Related Party
--------------------------------------------------------------------------------

The  Company,  during the six months  ended June 30, 2005  received  payment for
accounts receivable of approximately $131,000 from companies that are associated
with a  board  director.  In  addition,  the  Company  had  accounts  receivable
outstanding from these companies of approximately  $9,000,  and $140,000 at June
30, 2005, and December 31, 2004, respectively.

--------------------------------------------------------------------------------
NOTE 9 -Sale of Multiband Business Services segment
--------------------------------------------------------------------------------

After the close of business on March 31, 2005, the Company completed the sale of
certain assets and liabilities relating to its Multiband Business Services (MBS,
a/k/a Corporate  Technologies USA) division. The buyer was North Central Equity,
LLC ("Buyer").


                                                                         Page 16
<PAGE>
                     MULTIBAND CORPORATION AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             JUNE 30, 2005 AND 2004

The  purchase  price  paid  by the  Buyer  was  $2,550,000  which  consisted  of
$1,682,184  in cash at closing,  $349,817 in assumed  vacation  pay and warranty
liabilities, and the balance of $517,999 in a note receivable at 7% interest due
on December 31, 2005. The amount of the note receivable is subject to adjustment
based on certain  representations  and warranties provided by the Company in the
purchase agreement.  The Company has recorded a reserve of $178,948 against this
note receivable due to uncertainty of collectibility of the note.

In connection with the purchase  agreement,  the Company entered into an interim
services  agreement  whereby the Buyer is able to sublease space at no charge at
the  Company's  Minneapolis  and Fargo  locations  and obtain  access to certain
aspects of the Company's information technology resources for one year. Services
provided  will be charged  by either  party at fair  value and is  estimated  by
management to be insignificant.  In addition the services  agreement is explicit
that the  Company  has no control  over the  buyer's  operations.  The buyer may
receive  additional  free rent for part or all of a second year depending on the
results of a post closing inventory appraisal. It is indeterminable at this time
the results of this appraisal,  however,  the Company  estimates the second year
option will be exercised  and will be accruing the liability as part of the sale
transaction.

In conjunction with the sale, the Company reduced its indebtedness to Convergent
Capital by $2,000,000  since part of the collateral of this note payable relates
to the assets sold. This $2,000,000 was borrowed back from Convergent in the 2nd
quarter of fiscal 2005. The gain on sale of MBS business  services segment is as
follows:

<TABLE>
<S>                                                                   <C>
Sale Price
      Cash proceeds                                                   $1,682,184
      Note receivable, net of reserve of $178,948                        339,051
      Assumed liabilities                                                349,817
                                                                      ----------
             Total sale price, net of reserve of $178,948              2,371,052

Assets sold
      Inventory, net of reserve                                        1,045,110
      Property and equipment                                              52,351
                                                                      ----------
             Net assets sold                                           1,097,461

Less costs and expenses
      Broker's fee                                                       132,500
      Sublease for one year at no charge                                 500,000
      Additional free rent related to inventory adjustment               500,000
      Legal and accounting costs                                          37,600
                                                                      ----------
             Total costs                                               1,170,100
                                                                      ----------
       Net gain on sale                                               $  103,491
                                                                      ==========
</TABLE>


                                                                         Page 17
<PAGE>
                     MULTIBAND CORPORATION AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             JUNE 30, 2005 AND 2004

The  following  are  condensed  statements  of  operations  of the  discontinued
operations for the three and six months ended June 30:

<TABLE>
<CAPTION>
                                                Three Months Ended June 30,        Six Months Ended June 30,
                                               ----------------------------      ----------------------------
             Statement of Operations              2005             2004              2005             2004
                                               -----------      -----------      -----------      -----------
<S>                                            <C>              <C>              <C>              <C>
Revenues                                       $    14,052      $ 4,997,608      $ 3,698,927      $ 9,982,426
Cost of sales                                      (11,117)       3,733,614        2,701,664        7,672,328
Selling, general and administrative               (106,903)       1,255,069        1,307,502        2,562,190
Depreciation and amortization                           --           92,778           56,188          206,868
                                               -----------      -----------      -----------      -----------
Income (loss) from operations                      132,072          (83,853)        (366,427)        (458,960)
Other income (expense)                              (9,180)         (96,010)         (55,440)        (194,591)
                                               -----------      -----------      -----------      -----------
Net income (loss)                                  122,892         (179,863)        (421,867)        (653,551)
Gain on sale                                            --               --          103,491               --
                                               -----------      -----------      -----------      -----------
Income (loss) from discontinued operations     $   122,892      $  (179,863)     $  (318,376)     $  (659,273)
                                               ===========      ===========      ===========      ===========
</TABLE>

The Company has  recorded $1 million in deferred  rent  liability in relation to
the sale of the MBS business  segment.  This  liability is amortized over the 24
month term of the sublease.  Amortization  has been netted with rent expense and
the  resulting  income of $29,197 is included in other income (expense) for the
three and six months ended June 30, 2005.

                                                                         Page 18
<PAGE>

FORWARD-LOOKING STATEMENTS

         From time to time, the Company may publish  forward-looking  statements
relating  to  such  matters  as  anticipated  financial  performance,   business
prospects,  product pricing, management for growth, integration of acquisitions,
technological  developments,  new  products,  and similar  matters.  The Private
Securities   Litigation   Reform  Act  of  1995   provides  a  safe  harbor  for
forward-looking  statements including those made in this statement.  In order to
comply  with the terms of the Private  Securities  Litigation  Reform  Act,  the
Company notes that a variety of factors could cause the Company's actual results
and experience to differ  materially from the  anticipated  results or Company's
forward-looking statements.

         The  risks  and   uncertainties   that  may  affect   the   operations,
performance,  developments  and results of the  Company's  business  include the
following:  national  and  regional  economic  conditions;  pending  and  future
legislation affecting IT and telecommunications industries; market acceptance of
the Company's products and services;  the Company's  products and services;  the
Company's  continued ability to provide integrated  communication  solutions for
customers in a dynamic industry; and other competitive factors.

         Because these and other  factors  could affect the Company's  operating
results,  past financial  performance  should not necessarily be considered as a
reliable indicator of future performance and anticipated future period results.


                                                                         Page 19
<PAGE>

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
          RESULTS OF OPERATION

OUR COMPANY

         Multiband Corporation (Multiband),  (f/k/a Vicom,  Incorporated),  is a
Minnesota  corporation  formed in September  1975.  Multiband  has two operating
segments:  1)  Multiband  Consumer  Services  (MCS,  legally  known as Multiband
Subscriber  Services,  Inc.),  which  encompasses  the subsidiary  corporations,
Multiband  USA,  Inc.,  URON,  Inc., and Rainbow  Satellite  Group,  LLC; and 2)
Minnesota Digital Universe, Inc. (MDU)

         Multiband  completed  an  initial  public  offering  in June  1984.  In
November 1992,  Multiband  became a  non-reporting  company under the Securities
Exchange Act of 1934. In July 2000,  Multiband  regained its  reporting  company
status.  In December,  2000,  Multiband  stock began trading on the NASDAQ stock
exchange  under the symbol  VICM.  In July 2004,  the symbol was changed to MBND
concurrent with the Company's name change from Vicom,  Incorporated to Multiband
Corporation.

         Multiband's website is located at: www.multibandusa.com.

         From its inception  until  December 31, 1998,  Multiband  operated as a
telephone  interconnect  company only.  Effective  December 31, 1998,  Multiband
acquired  the  assets of the  Midwest  region of Enstar  Networking  Corporation
(ENC), a data cabling and networking  company. In late 1999, in the context of a
forward  triangular  merger,  Multiband to expand its range of computer products
and  related  services,  purchased  the stock of  Ekman,  Inc.  d/b/a  Corporate
Technologies,   and  merged  Ekman,   Inc.  into  the  newly  formed   surviving
corporation,  Corporate Technologies,  USA, Inc. (MBS). MBS provided voice, data
and video  systems and  services to business  and  government.  The MBS business
segment  was  sold  effective   April  1,  2005.  All  references  to  financial
information and descriptions of business in this  registration have been revised
to  reflect  only  our  continuing  operations  and  all  references  to our now
discontinued Multiband Business Services have been eliminated. MCS segment began
in February 2000. MCS, the Company's  continuing  operating  division,  provides
voice,  data and video  services to multiple  dwelling  units  (MDU),  including
apartment  buildings,  condominiums  and time  share  resorts.  During  2004 the
Company  purchased video subscribers in a number of separate  transactions,  the
largest one being Rainbow  Satellite  Group,  LLC.  During 2004 the Company also
purchased the stock of Minnesota  Digital  Universe,  Inc.,  (MDU segment) which
made the  Company  the  largest  master  service  operator  in MDU's for DirecTV
satellite television in the United States.

At August 15, 2005, MCS had 36,268  subscriptions  for its services (1,424 voice
subscriptions,  30,792 video subscriptions and 4,052 internet subscriptions). At
August 15,  2005,  MDU had  approximately  72,000  video  subscriptions  managed
through its network of system  operators.  The Company  provides its services to
approximately 20 mobile home parks in Florida.  Due to the seasonal residency of
the mobile home parks,  the Company's  revenues  generated  from the mobile home
parks  decreased by  approximately  53% between the first and second quarters of
2005. The Company anticipates  regaining these  subscriptions  during the winter
months. However, there is no guarantee these subscriptions will be recovered.


                                                                         Page 20
<PAGE>

SELECTED CONSOLIDATED FINANCIAL DATA

<TABLE>
<CAPTION>
                                                                         DOLLAR AMOUNTS AS A                  DOLLAR AMOUNTS AS A
                                                                        PERCENTAGE OF REVENUES              PERCENTAGE OF REVENUES
                                                                          THREE MONTHS ENDED                  SIX MONTHS ENDED
                                                                  --------------------------------    ------------------------------
                                                                  June 30, 2005      June 30, 2004    June 30, 2005    June 30, 2004
                                                                    (unaudited)       (unaudited)      (unaudited)       (unaudited)
                                                                  ------------------------------------------------------------------
<S>                                                               <C>                <C>              <C>              <C>
REVENUES                                                                100%              100%             100%             100%

COST OF PRODUCTS & SERVICES (Exclusive of depreciation and             40.7%             58.9%            45.4%            57.8%
amortization shown below)

SELLING, GENERAL & ADMINISTRATIVE                                      56.8%             39.1%            57.3%            53.5%
DEPRECIATION & AMORTIZATION                                            29.1%             39.5%            30.0%            40.9%

LOSS FROM OPERATIONS                                                  -26.6%            -37.5%           -32.7%           -52.2%
INTEREST EXPENSE & OTHER, NET                                          -7.2%             -6.2%           -12.4%           -10.8%
LOSS FROM CONTINUING OPERATIONS                                       -33.8%            -43.7%           -45.1%           -63.0%
INCOME (LOSS) FROM DISCONTINUED OPERATIONS                              2.9%             -6.2%            -4.0%           -17.7%
NET LOSS                                                              -30.9%            -49.9%           -49.1%           -80.7%
</TABLE>

RESULTS OF OPERATIONS

Revenues

         Company  revenues  increased  43.7% to $4,183,606 for the quarter ended
June 30, 2005 as compared to  $2,911,261  for the quarter  ended June 30,  2004.
This  increase  is  primarily  due  to  the  acquisition  of  video  subscribers
throughout 2004.

         Revenues  in the  second  quarter  of fiscal  2005 for the MCS  segment
increased  100.9 % to $2,081,147 as compared to $1,035,597 in the second quarter
of fiscal 2004.  This  increase is  primarily  due to the  acquisition  of video
subscribers throughout 2004.

Revenues in the second  quarter of 2005 for the MDU segment  increased  12.3% to
$2,102,459 as compared to $1,875,664 in the second quarter of fiscal 2004.  This
increase  is  primarily  due to an increase  in managed  subscribers  during the
period  combined  with price  increases  enacted by DirecTV in 2005 which led to
increased  residual revenues (payments received as a result of recurring monthly
revenues)  for MDU during the quarter  versus the prior  year's  quarter.  These
increased  residual revenues for the second quarter of 2005 were material enough
to offset lower revenues for one-time  activation fees during the second quarter
of 2005  which  declined  versus  the  prior  period  in 2004  due to  DirecTV's
reduction in the payment amount per activation.

         Revenues for the six month period ended June 30, 2005 increased  114.8%
to $7,890,482 from $3,673,916 for the same period in 2004.  Again,  this revenue
increase is primarily due to the  acquisition  of video  subscribers  throughout
2004 and DirecTV price increases.


                                                                         Page 21
<PAGE>

Cost of Products and Services (Exclusive of depreciation and amortization)

The  Company's  cost of products and  services,  exclusive of  depreciation  and
amortization,  decreased  slightly to $1,703,517  for the quarter ended June 30,
2005 as compared to $1,712,280 for the similar quarter last year.

Costs  of  products  and  services  for the MCS  segment  for the  quarter  were
$1,209,389  compared  to  $539,436  in the  same  quarter  last  year,  a 124.1%
increase.  This increase in costs of services is directly  related to a material
increase in revenues.

Costs of products and services for the MDU segment for the quarter were $494,128
compared to  $1,172,844  in the same quarter last year, a 57.7%  decrease.  This
reduction in costs reflects  reduced payments to system operators for activation
fees and a decrease of $554,299 in accrued liabilities for vendor chargebacks.

For the six month period ended June 30,  2005,  costs of products and  services,
exclusive  of  depreciation  and  amortization   were  $3,583,025   compared  to
$2,123,242  in the prior year.  This  overall  increase in costs of products and
services  over the prior year  resulted  primarily  from an  increase in overall
revenues.

Selling, General and Administrative Expenses

         Selling,  general  and  administrative  expenses  increased  109.0%  to
$2,377,575  in the quarter  ended June 30, 2005,  compared to  $1,137,780 in the
prior year quarter.  This increase is primarily a result of increased  personnel
expenses  related to the  acquisition of video  subscribers  throughout 2004 and
resulting subscriber growth. Selling,  general and administrative expenses were,
as a percentage of revenues, 56.8% for the quarter ended June 30, 2005 and 39.1%
for the similar period a year ago.

         For the six month period ended June 30, 2005, these expenses  increased
130.1% to $4,524,487 as compared to $1,965,933 for the six months ended June 30,
2004. As a percentage of revenue,  selling,  general and administrative expenses
are 57.3% for the six month  period ended June 30, 2005 as compared to 53.5% for
the same period in 2004.

Interest Expense

         Interest  expense was  $373,013  for the quarter  ended June 30,  2005,
versus $188,986 for the similar period a year ago, reflecting an increase in the
Company's  debt and original issue discount  expense.  Amortization  of original
issue  discount  was  $164,882  and $159,199 for the three months ended June 30,
2005 and 2004.

         Interest  expense was $1,058,714 for the six months ended June 30, 2005
and  $418,320  for the same period  last year.  Amortization  of original  issue
discount  was  $664,980  for the six months ended June 30, 2005 and $348,178 for
the same period last year.


                                                                         Page 22
<PAGE>

Income(loss) from Operations

         The  Company,  in the  second  quarter  of 2005,  incurred  a loss from
operations for its combined  operating  business segments of $1,419,246 versus a
loss of $1,271,611  during the prior year's period.  Loss from  operations  from
said  segments  was  $3,561,186  during  the  first six  months  of 2005  versus
$2,314,788  during the same period in 2004. The MDU segment showed a profit from
operations of $1,029,527  during the second  quarter of 2005 and  $1,339,296 for
the six months ended June 30, 2005 versus  profits of $124,351 for the three and
six months ended June 30, 2004.  For the second quarter of 2005, the MCS segment
showed a loss from  operations of  $1,390,278  versus a loss of $536,776 for the
prior year  period.  For the six months  ended June 30,  2005,  the MCS  segment
showed a loss from  operations of  $2,620,190  versus a loss of $894,991 for the
prior year period.  The Multiband  Corporation  segment,  which has no revenues,
showed a loss from  operations of $1,058,495 for the three months ended June 30,
2005 and  $2,280,292  for the six months  ended June 30, 2005  versus  losses of
$859,186 and $1,544,148 for the same period last year.

Net Loss

         In the second quarter of fiscal 2005,  the Company  incurred a net loss
of $1,296,354 compared to a net loss of $1,451,474 for the second fiscal quarter
of 2004. For the six months ended June 30, 2005, the Company recorded a net loss
of $3,879,562 as compared to $2,968,339 for the six months ended June 30, 2004.

Liquidity and Capital Resources

         During  the six  months  ended  June 30,  2005 and  2004,  the  Company
recorded a net loss of $3,879,562 and $2,968,339,  respectively. We had negative
cash flows from operating  activities of $2,842,499  and  $1,517,424  during the
period  ended  June 30,  2005 and  2004,  respectively.  Reduction  of  accounts
payables and accrued  liabilities  and  retirement of a wholesale line of credit
totaled $2,613,829 for the period ended June 30, 2005.  Management believes that
over the next 12 months  there  will be no  significant  reduction  in  accounts
payable or the  wholesale  line of credit  which had a zero  balance at June 30,
2005.

         Cash and cash  equivalents  totaled  $5,407,000 at June 30, 2005 versus
$726,553 at December 31, 2004.  Available  working  capital,  for the six months
ended June 30,  2005  increased  significantly  compared  to  December  31, 2004
primarily due to the 10 million  dollar sale of Class I preferred  stock.  Short
term debts were  reduced in the six months  ended June 30,  2005 as the  Company
continued to retire financing debt and debt related to  acquisitions.  Long term
debt  increased  two  million  dollars as the  Company  re-borrowed  two million
dollars from Convergent Capital under an existing debt facility. The Company had
a material  decrease in both accounts  receivables and accounts  payable for the
period ended June 30, 2005  reflecting  the sale and wind down of the  Multiband
business  services  segment.  Net cash flows from investing  activities  totaled
$770,844 for the period ended June 30, 2005.

         The Company continues to experience  significant growth,  primarily due
to  increased   subscriber  related  recurring  revenues  acquired  via  various
transactions previously mentioned herein.

         Management of Multiband  believes  that,  for the near future,  cash on
hand,  as of June 30, 2005,  is adequate to meet the  anticipated  liquidity and
capital resource requirements of its business for the next 12 months.


                                                                         Page 23
<PAGE>

Capital Expenditures

         The  Company  used  $415,065  for capital  expenditures  during the six
months ended June 30, 2005,  as compared to $240,413 in the similar  period last
year. Capital expenditures  consisted of equipment acquired for internal use. We
estimate   capitalized   expenditures   for  the   remainder  of  2005  will  be
approximately $300,000.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Impairment of Long-Lived Assets

The  Company's  long-lived  assets  include  property,  equipment  and leasehold
improvement.  At June 30, 2005,  the Company had net  property and  equipment of
$4,075,534,  which represents  approximately  14% of the Company's total assets.
The estimated  fair value of these assets is dependent on the  Company's  future
performance. In assessing for potential impairment for these assets, the Company
considers  future  performance.  If these forecasts are not met, the Company may
have to record an  impairment  charge not  previously  recognized,  which may be
material.  During the three and six months  ended  June 30,  2005 and 2004,  the
Company did not record any impairment losses related to long-lived assets.

Impairment of Goodwill

We  periodically   evaluate   acquired   businesses  for  potential   impairment
indicators.  Our judgements regarding the existence of impairment indicators are
based on legal factors,  market  conditions and  operational  performance of our
acquired  businesses.  Future events could cause us to conclude that  impairment
indicators  exist and that goodwill  associated with our acquired  businesses is
impaired.  Any resulting impairment loss could have a material adverse impact on
our  financial  condition  and results of  operations.  During the three and six
months ended June 30, 2005 and 2004,  the Company did not record any  impairment
losses related to goodwill.

Amortization of Intangible Assets

The Company amortizes a domain name over its estimated useful life of five years
using the  straight-line  method.  The Company  amortizes  access  contracts and
customer cable lists, on an average,  over their useful  estimated lives ranging
from two to five years.  The Company is amortizing the right of entry contracts,
on an average, over their estimated useful lives ranging from 36 to 73 months.

ITEM 3.  QUANTITIVE AND QUALITIVE DISCLOSURE ABOUT MARKET RISK

         Multiband is subject to interest  rate  variations  related to its note
payable with Laurus Master Fund,  Ltd. The Laurus note payable has interest tied
to the prime lending rate.

ITEM 4.  CONTROLS AND PROCEDURES

         As of the end of the  period  covered  by this  quarterly  report,  the
Company  carried  out  an  evaluation,   under  the  supervision  and  with  the
participation of the Company's  management,  of the  effectiveness of the design
and operation of the Company's  disclosure  controls and procedures  pursuant to
Rule  13a-14(c)  of  the  Securities  Exchange  Act of  1934.  Based  upon  that
evaluation,  the Company's Chief Executive  Officer and Chief Financial  Officer
concluded that the Company's disclosure controls and procedures are effective in
alerting them in a timely basis to material  information relating to the Company
required to be disclosed in the Company's periodic SEC reports.  There have been
no significant  changes in the Company's  internal  controls or in other factors
which could  significantly  affect internal controls  subsequent to the date the
Company carried out its evaluation.


                                                                         Page 24
<PAGE>

PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         The Company,  in the second  quarter of 2005,  settled its legal action
with  Private  Investor's  Equity  Group  (PIEG)  which was brought in the third
quarter  of 2004.  The terms of the  settlement  require  Multiband  to pay PIEG
$150,000  over an eleven month period and issue PIEG 33,334 shares of restricted
Multiband  common stock. The shares were valued at $36,000 using the fair market
value on the  settlement  date.  As of June 30, 2005,  with the exclusion of the
aforementioned  PIEG  matter,  Multiband  was not engaged in any  pending  legal
proceedings where, in the opinion of the Company,  the outcome is likely to have
a material  adverse  effect upon the business,  operating  results and financial
condition of the Company.

ITEM 6.  EXHIBITS

      (a)   Exhibits

            31.1  Certification  of Chief  Executive  Officer  pursuant to Rules
                  13a-14 and 15d-14 of the Exchange Act.

            31.2  Certification  of Chief  Financial  Officer  pursuant to Rules
                  13a-14 and 15d-14 of the Exchange Act.

            32.1  Certification of Chief Executive Officer pursuant to 18 U.S.C.
                  Section 1350.

            32.2  Certification of Chief Financial Officer pursuant to 18 U.S.C.
                  Section 1350.


                                                                         Page 25
<PAGE>

SIGNATURES

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                             MULTIBAND CORPORATION
                             Registrant
Date: August 22, 2005        By:

                                                /s/ James L. Mandel
                                              Chief Executive Officer

Date: August 22, 2005       By:
                                                 /s/ Steven M. Bell
                                              Chief Executive Officer
                                    (Principal Financial and Accounting Officer)


                                                                         Page 26